Agenda Item AGENDA STAFF REPORT ASR Control 23-001065
MEETING DATE:	12/19/23
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	2
SUBMITTING Agency/Department:	Sheriff-Coroner (Approved)
Department contact person(s):	Brian Wayt (714) 647-1803
	Dave O'Connell (714) 935-6844

Subject: Approve Amendment No. 2 to Archico Design Build Inc. Agreement

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

4/5 Vote

Budgeted: Yes

Current Year Cost: $880,408

Annual Cost: N/A

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: BC 060: 100% NCC	County Audit in last 3 years: No
Levine Act Review Completed: Yes

Prior Board Action: 4/27/2021 #13, 12/14/2021 #14

RECOMMENDED ACTION(S):

Approve Amendment No. 2 to agreement with Archico Design Build Inc. for an equitable adjustment for extended overhead for additional construction services and costs due to unforeseen conditions found during demolition, excavation, and construction, as part of the Katella Range Facility Upgrade Project at the Sandra Hutchens Regional Law Enforcement Training Center in the not to exceed amount of $880,408, for a revised cumulative contract not to exceed amount of $10,983,246.

Authorize Sheriff-Coroner Department's Director of Research and Development or authorized designee to execute Amendment No. 2.

SUMMARY:

Approval of Amendment No. 2 to the agreement with Archico Design Build Inc. will allow the Sheriff-Coroner Department to finalize the construction project and prepare for close out.

BACKGROUND INFORMATION:

The Sheriff-Coroner Department's (Sheriff) range facility was partially updated with target systems that were more adaptive to firearms being used; however, further alterations were needed to bring the entire range system up to date and within code compliance with additional safety and environmental measures.

Included in the FY 2020-21 Budget was partial funding of the Katella Range Facility Upgrades. In FY 2021-22 Budget, the remaining funding was provided.

On April 27, 2021, the Board of Supervisors (Board) approved Sheriff's recommendation to award the Katella Range Facility Upgrade Project contract to Archico Design Build Inc. effective upon the receipt of all necessary signatures, bonds and insurance, in the not to exceed amount of $7,146,000. The Notice to Proceed was issued May 18, 2021.

Sheriff subsequently executed twenty-five Change Orders under delegated authority pursuant to the County’s Design and Construction Procurement Policy Manual.

List of Executed Change Orders

2021	2022	2023
5/13- $5.866	2/11 - $140.257	1/18 – 207.786
5/18 - $6.716	3/25 - $107.115	5/9 - $138.596
7/7 - $$7.934	4/6 - $94.563	5/15 - $134.479
8/19 -$152.352	4/8 - $38.324	7/10 - $163.446
8/24 - $199.809	5/20 - $206.975	8/31 - $44.188
9/14 - $92.231	5/25 - $9.458	-
10/5 - $4.815	6/7 - $106.434	-
11/1 - $108.904	6/21 - $86.795	-
12/10 - $91.757	7/14 - $171.197	-
-	8/31 - $165.409	-
-	12/6 - $197.880	-

Separately, on December 14, 2021, the Board approved Amendment No. 1 to the agreement in the amount of $273,552. These changes were necessitated by unforeseen conditions found within the scope of work during the course of demolition, excavation, and construction. These changes resulted in the initial date of completion being extended by 460 days with a completion date of August 21, 2023.

As a result of the agreement’s modifications, the Contractor made two requests for an equitable adjustment to be made for extended overhead and operating costs, pursuant to the agreement. See Attachment B. The Contractor’s first request, Request for Change (RFC) RFC 116, was received February 28, 2023, for the time period between June 1, 2022, and January 31, 2023, and was in the amount of $550,474. The Contractor’s second request for extended overheard was received on September 26, 2023, and was for the time period between February 1, 2023, and August 21, 2023, in the amount of $407,147. The Contractor’s total request for an equitable adjustment was $957,621.

Pursuant to Section 20 of the Agreement’s General Conditions, if the County makes changes to the specifications or scope of work that increase the cost of the project or extend the time for performance, an equitable adjustment shall be made and the Agreement shall be modified in writing. After a review of the Contractor’s requests and the monies already paid to Contractor through the various change orders, Contractor agreed that the amount for equitable adjustment is $880,408. Sheriff requests Board approval to execute Amendment No. 2 to increase the agreement by $880,408 to account for the Contractor’s extended overhead and operational costs due to the project’s increased cost and extended timeframe.

Approval of the proposed Amendment No. 2 exceeds the thresholds allowed by Section 4.5- (1)c of the Design and Construction Procurement Policy Manual and adds extended overhead to the original project. Public Contract Code (PCC) Sections 20135 requires that the changes in specifications contemplated within Amendment No. 2 are approved by a 2/3 vote of the members of the Board. Separately, PCC Section 20137 requires that the changes in amount to the agreement are approved by a 4/5 vote of the Board. See Attachments A and B for information regarding the amended changes.

This agreement includes subcontractors. Contractor performance has been confirmed as at least satisfactory. Sheriff has verified that there are no concerns that must be addressed with respect to contractor's ownership/name, litigation status or conflicts with County interests. There is no redline attached as proposed Amendment No. 2 contains all of the information being revised.

Compliance with CEQA:

This action is not a project within the meaning of the California Environmental Quality Act (CEQA) Guidelines Section 15378 and is therefore not subject to CEQA, since it does not have the potential for resulting in either a direct or physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The approval of this agenda item does not commit the County to a definite course of action in regard to a project since it involves authorization to amend the original awarded contract for the Katella Range Facility Upgrade Capital Project. This proposed activity is therefore not subject to CEQA. Any future action connected to this approval that constitutes a change in project scope will be reviewed for compliance with CEQA.

FINANCIAL IMPACT:

Appropriations for this Amendment are included in Budget Control 060, Sheriff Coroner’s FY 2023-24 Budget. The Amendment contains language for the agreement between the contractor with the County that final payment and release retention will follow the filing of the Project's Notice of Completion within fifteen (15) days after the date of completion of the punch list.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Amendment No. 2 to Agreement MA-060-21011194
Attachment B – Request For Change 116 Extended Overhead and request dated September 26, 2023
Attachment C – Change Submittal and Summary
Attachment D – Public Contract Codes 20135 and 20137